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World bank, in its latest report, has lowered India’s 2022-23 growth rate from its June forecast, by 1 percentage point to 6.5 per cent.
In the previous report, the international organization had projected India’s growth rate to be at 7.5 per cent for the period. In the latest South Asia Economic Focus, Coping with Shocks: Migration and the Road to Resilience, released today, the World Bank has revised India’s growth rate down from its June forecast. It further expects India to grow at 7 per cent and 6.1 per cent in 2023 and 2024 respectively.
The twice-a-year update has also revised the regional growth rate of South Asia by 1 percentage point from the June forecast to 5.8 per cent, as it expects a “dampening” growth rate in the region.
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The main reasons highlighted for the revision have been Sri Lanka’s economic crisis, Pakistan’s catastrophic floods, a global slowdown, and the impacts of the war in Ukraine on top of the lingering scars of the COVID-19 pandemic.
“Pandemics, sudden swings in global liquidity and commodity prices, and extreme weather disasters were once tail-end risks. But all three have arrived in rapid succession over the past two years and are testing South Asia’s economies,” said Martin Raiser, the World Bank Vice President for South Asia.
